Twelve years and counting

A chronology of events in the Samut Prakan Wastewater Management Project saga

1986

Thai government study of industrial environment management concludes that polluted water, particularly from industries, is most serious and in need of an urgent solution.

The Asian Development Bank (ADB) grants US$295,000 to the National Environment Board (NEB) to create the Samut Prakan Industrial Pollution Control Management.

1992

ADB grants US$350,000 to the NEB for the Environmental Rehabilitation Project (ERP) to conduct a feasibility study of the rehabilitation of the Samut Prakan environment, particularly water quality.

ERP produces a water quality and polluted water management plan, as well as a feasibility study of the collection and treatment of wastewater in Samut Prakan industrial areas. The study recommends that each side of the province have only one central wastewater treatment plant.

The ADB finds the project economically and financially feasible and provides a loan for the project to the Thai government.

1993

15 December: Following a resolution by the NEB, Samut Prakan declares the province a pollution control area.

ADB grants US$ 600,000 to the Pollution Control Department (PCD) to conduct a feasibility and design study for the Wastewater Management and Pollution Control in Samut Prakan.

ERP assists the PCD to prepare bidding documents for a turnkey contract for collection and treatment of polluted water in eastern and western Samut Prakan.

1994

23 December: Klong Daan Marine & Fishery Co Ltd buys from Palm Beach Development Co Ltd 17 plots of land totalling 1,903 rai. The land was later sold to the winning contractor for the Samut Prakan wastewater treatment project in 1998.

1995

14 June: NEB approves the project and financing plan for Samut Prakan wastewater management. NEB approves a turnkey approach for all construction with funds from the national budget, the environmental fund and the ADB.

17 October: The Cabinet approves the project and cost (13,612 million baht), and specifies the Science, Technology and Environment Ministry as project supervisor.

The project proposal specifies land located in Samut Prakan coastal area spanning both sides of the Chao Phya River.

4 November: ADB lenders require that landowners must tender a sales proposal to the PCD's prequalification selection committee. A list of landowners must be forwarded to the official contractor, who will scrutinise the list and ensure fairness to foreign bidders. ADB insists the bidding must be international and competitive.

15 September: The government announces the start of prequalification selection of the turnkey project.

1996

6 February: PCD invites bidder prequalifications for land required.

15 February: The government receives 13 offers of prequalification documents for the construction of the project in line with ADB requirements.

9 April: Six persons tender qualification documents to sell land on the eastern bank of the river, two persons with land on the western bank.

30 April: PCD appoints a committee to select the best land for the project. The committee includes PCD, Land Department and Samut Prakan provincial officials.

15 May: The government shortlists four bidders for the project construction.

3 June: Under the shortlist procedure, the government sells bidding documents to four joint-venture groups. (Following the 1992 procurement regulations of the Prime Minister's Office, the shortlist procedure has two parts: a technical proposal tender and a tender for improved technique and land price.)

3 July: The government finds two persons qualified to sell the land on the eastern bank, none on the western bank.

31 July: PCD signs a loan contract with the ADB for US$150 million. The loan specifies the PCD as the "project executing agency."

5 July: The Committee for the Management of Road Traffic tells the Prime Minister's Secretariat that construction inBangkok and the suburbs must not affect traffic.

PCD asks ADB to consider the 1994 open cut construction system.

October: ADB sends a mission to decide on the construction approach. The mission concludes that it "will increase... costs to about US$800 million."

7 October: Two parties tender technical proposals for the first phrase, suggesting the combination of the east and west bank projects into one linked through a tunnel under the Chao Phya River.

This was later followed by bids for the second-stage revised technical and finance proposals to the western bank project, which was approved in principle (with corrections) by PCD and the consulting joint venture group.

12 November: The Cabinet permits PCD to commit 17,451 million baht to the project, for the period from 1997 to 2002.

1997

20 January: In the second-stage tender, only one bid arrives.

17 February: An NEB meeting agrees in principle to the turnkey contract of the wastewater treatment project in east and west Samut Prakan for 22,955 million baht (compared to a 1994 projection of 12,866-million baht). The cost increase is for higher land prices, solving traffic problems and possible environmental problems, for pipe laying using pipe-jacking and tunneling systems instead of the open-cut system (to decrease traffic problems), to line the pipes with anti-erosion substances to extend their lifespans from 20 to over 50 years, and to insure that the treated water, when released, would not affect local water sources.

25 March: The Chavalit Government approves in principle the building of the project on a turnkey basis for 22,955 million baht. Though only one party tendered a bid, a PCD committee ruled that project suspension would disadvantage the government as it must use up the loan or pay 0.75 percent of money unspent. In addition, a new bidding round could delay the project by at least a year.

1 April: Bidding opens at 26,520.91 million baht. Three bargains are made. The government awards the turnkey contract to NVPSKG Joint Venture and NWWI for their final agreement at a cost of 22,949.94 million baht.

8 August: The Science, Technology and Environment Ministry approves the signing of the turnkey contract.

20 August: PCD and the joint venture group sign the turnkey contract.

The contract specifies that the contractor must find the land, buy it, and transfer it to PCD. The land should be no less than 1,900 rai and not exceeding 1,956.6 million baht. This must be done within six months after signing the contract.

1998

2 January: Upon request of PCD, the Bang Phli branch of the Samut Prakan Land Office appraises each of the 17 plots of land as worth 480,000 baht a rai. The land is between kilometre markers 58 and 59 on Sukhumvit Road in Tambon Klong Daan of Bang Bor district in Samut Prakan.